The Supreme Court of India considered a dispute between two public sector enterprises, GAIL and IPCL, over transportation charges imposed by GAIL on IPCL. IPCL challenged the validity of the clauses in the contract through a writ petition, claiming that the clauses were discriminatory and unfair. The court held that the writ petition was maintainable as the dispute had a public element and writ jurisdiction can be exercised when the state, even in its contractual dealings, fails to practice fairness or discrimination. The court also held that the High Court could have invalidated the clauses and granted monetary relief in the form of a refund.
GAIL vs IPCL decided by the Supreme Court of India on Feb 8, 2023.